Across the world, average health insurance costs are beginning to exhibit an upward pattern – And with that health insurance premiums are rising by the year too. The United States recently saw a huge spike in health insurance premiums, and here in the UAE, our predicament fares no better. If you’re wondering why your premiums are going up, in this article, we will be analysing some of the reasons behind this surge.

Increased usage

The healthcare industry has been greatly strained with a growing population tied to subsidized medical services. More and more people have been using health care facilities over the recent past and this drastic surge means that national health care industries are becoming more burdened with a higher financial strain. The skyrocketing costs for healthcare today are a culmination of many years of steady increase in this burden.

Increased cost of healthcare technology

As newer and more cutting-edge technology reaches the healthcare business, there comes a downside in the form of higher costs tied to it. Across the country and the world, healthcare has been experiencing a revolution in terms of adding more high-tech new age innovations to aid the overall industry’s output and efficiency – and this advancing technology has led to more equipment, newer, more skilled labour and higher costs as a direct result of it.

[Related: How To Choose A Private Health Insurance Policy]

An ageing population

With fertility rates across the globe falling steadily not just in the UAE but across the world, an older and more worn-down population is emerging. Healthcare providers are bound to become more strained catering to this aging population. This means that there’s more old people to take care of, leading to higher costs as a result of age-related medical services.


Inflation has broadly touched all industries and business realms across the world. Healthcare isn’t exempt from this volatile financial trend either. Inflation leads to healthcare companies needing to pay more to acquire labour, buy equipment and oversee their range of procedures. This means that the increased costs end up trickling down to reach you – the customer – as well.

An increase in health conditions and claims

One of the major components in the surge in global health care rates is the increase in medical conditions and healthcare related stresses that the world has been experiencing. Instances of lifestyle related diseases are also on a rise. A 2016 survey conducted by the Abu Dhabi Department of Health showed that deaths from cardiovascular diseases have gone up by 2 per cent since 2015.

Another global trend that is most acutely visible is the consumption of opioids and painkillers being sanctioned on a massive scale by the healthcare industry. This means that the number of people claiming health insurance year on year has also increased causing insurance companies to increase their premiums.

In conclusion…

In the end, health insurance premiums are set to stay on an upward trajectory with the above mentioned issues not showing signs of waning down any time soon. The only solution aimed at staving off increasing costs is going to have to be focused around comparing health insurance plans and purchasing one carefully. A bit of homework can help you find a much better deal on a health insurance plan that’s just right for you.

[Related: Buying Health Insurance in the UAE: More Than Just a Formality]